Artificial Intelligence (AI)

Adoption in Human Resource

Management Pakistan
Presented By:
GROUP-7
Ibrahim Khalil 2022-MS-EM-003
Imran Gul 2021-MS-EM-511
Muhammad Junaid 2021-MS-EM-105
Mudassar Sadiq 2021-MS-EM-109

Presented to:

DR. SADAF ZAHOOR

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Introduction
 The increasing trend of using AI technology in various HRM activities
such as recruitment, training and development, employee
engagement, and performance management. AI can provide numerous
benefits to HRM, such as streamlining processes, reducing bias and
errors, and improving decision-making. However, the adoption of AI in
HRM also poses several challenges, including ethical considerations,
potential job displacement, and the need for significant investment in
technology and skills.
 This research topic aims to investigate the different predictors of the
adoption of AI in HRM. The study will also explore the current state of
AI technology in HRM, the barriers to its adoption, and the skills and
competencies required for the successful integration of AI in HRM
practices. Overall, the research aims to provide insights and
recommendations for HR professionals and organizational leaders on
the effective adoption and integration of AI in HRM practices
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Literature Review
 AI has been integrated into the HR functions, especially in recruitment and
training & development functions.
 The usage of AI in recruitment has resulted in saving cost and time,
automation of various processes, and effective decision making. (Dr. Nidhi
Oswal, (2020))
 The integration of AI into the HR functions in Indian companies has been
relatively less compared to businesses from other countries. (Arun, Volume XI,
Issue XII, 2019)
 Lack of knowledge and awareness regarding the benefits and opportunities
created through the integration of Artificial Intelligence into HR has created
barriers in the minds of people, preventing them from seeing how AI could
actually bring about a positive change within the HR function and support its
role of playing a strategic partner to the company. (Herranen, May 2019)
 The study has addressed the common challenges HRs might face while
integrating AI and HR and how these challenges could be overcome.
 The study has highlighted the limitations of the technology in its current state3
and most importantly the benefits of using such technology in the HR function.
(Herranen, May 2019)
Gaps in existing literature
 The application of AI in recruitment is still a relatively new
topic, and there is a need for more research in this area.
 There is a lack of country-specific research on the topic of
AI and HR, and future research could be conducted to
receive a broader perspective.
 The impact of AI-based recruitment on company success
and turnover in numerical terms needs to be explored.
 Job applicants' perspective and experience of AI-based
recruitment could be studied to get more perspectives on
this topic.
 The elimination of gender biases and discrimination among
job applicants by AI could be studied in the future 4
Problem Statement

 What are the challenges faced by organizations in Pakistan in the adoption of

AI in HRM, and what measures can be taken to overcome these challenges and
ensure readiness for AI in HRM?

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Top AI Platforms with their applications IN
HRM
Top AI Recruitment
Application usage in Recruitment
Platforms Companies using AI Tools in Recruitment

Uses AI with humans in the circle creates an internal

team to monitor the database, and provides the source
of diverse and qualified candidates in no time. Uses an
automated email center, robust analytical dashboard, Sony Music, Velcro, Maersk, Getty images, Drone
Fetcher team tracking, and individual performance metric. deploy, Lyft
www.fetcher.ai

Excellent Recruiting Chabot as a modern communication tool,

XOR connect, XOR apply, XOR video, and live chats in career McDonald’s, Exxon, Manpower, MolGroup,
XOR fairs. MARS
www.xor.ai

AI-powered talented data system, AI sourcing, real-time Nike, Intel, continental, Ceridian, Novo Nordisk,
Hiretual data to match the workflow, powerful diversity hiring . Wayfair
www.hiretual.com

AI-powered talent management, acquisition, development, and

diversity platform. Automatically update the information from Fortune500, Tata Communications,
organization ATS, HRIS, and CRM. Deep Learning technologies to Nutanix, Dolby, Booking.com, Dexcom,
Eightfold evaluate internal and external candidates. Micron, Netapp, Bayer
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www.eightfold.ai
Research Questions

 Does top management effect the adoption of AI in HRM ?

 What is the impact of competitive pressure on adoption of AI in HRM ?
 Does technological competency effect the AI adoption in HRM
 Does complexity influence the adoption of AI in HRM ?
 Does “intention to adopt” meditate the relationship between the above
factor AI adoption ?

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Research Objective

 To identify the impact of top management support in AI Adoption in HRM .

 To explore the impact of competitive pressure on AI Adoption in HRM
 To Identify the impact of technological competency on AI adoption in HRM
 To identify the effect of complexity on AI adoption in HRM .
 To explore the mediating effect of intention to adopt in above relationship

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Research Framework
Top Management
support

Competitive
pressure

Technology
competence AI Adoption in HRM

Compatibility

Complexity

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Research Methodology

 A survey was conducted through Questionnaires to collect data from HR

professionals in different organizations to assess different factors that
impact AI adoption.
 The data was collected by using a cross-sectional approached
 For data collection convenient sampling technique was used

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 Instruments
Variables Measure
Top Management support Soliman and Janz (2004)

Competitive pressure Lin (2006)

Technology competence Iacovou, Benbasat, and Dexter (1995)

Ramamurthy, Premkumar, and Crum

Compatibility
(1999)

Complexity Grover (1993)

AI adoption Chau & Tam (1997)

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Data Analysis on SPSS ( Statistical Package for the Social Sciences )
Correlations
TS CP TC CX CB
Pearson Correlation 1
Top Management Support
Sig. (2-tailed)
Pearson Correlation .573** 1
Competitive Pressure
Sig. (2-tailed) 0.00
Pearson Correlation .567** .614** 1
Technological competency
Sig. (2-tailed) 0.00 0.00
Pearson Correlation .485** .486** .599** 1
Complexity
Sig. (2-tailed) 0.00 0.00 0.00
Pearson Correlation .342** .406** .406** .461** 1
Compatibility
Sig. (2-tailed) 0.00 0.00 0.00 0.00
Pearson Correlation .319** .453** .433** .507** .427**
AI Adoption
Sig. (2-tailed) 0.00 0.00 0.00 0.00 0.00
**. Correlation is significant at the 0.01 level (2-tailed).

 In this analysis we have to see how much the variable will be related to each
other and the constant variable, the value of Pearson correlation can be +ive
or –ive. In our study all values are positive,
 The major relatability will be measured by the value of significance it has to
be less the 0.05 in order to show the relatability between the variable and 12
the constant.
Regression Analysis
Model Summary

Model R R Square Adjusted R Square Std. Error of the Estimate

1 .587a .345 .329 .57448

a. Predictors: (Constant), CB, TS, CX, CP, TC

 In the above, we have to see how much our chosen variable has an effect on
the constant variable. So from the analysis, we find out that 35% of AI
adoption is effect by Top management, complexity, competency, Competitive
pressure, and Compatibility.
 And 70% of other variables will affect the AI Adoption
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 ANOVAa

Sum of Squares df Mean Square F Sig.

Model
1 Regression 36.102 5 7.220 21.878 .000b
Residual 68.646 208 .330
Total
104.748 213

a. Dependent Variable: ADP

b. Predictors: (Constant), CB, TS, CX, CP, TC

 The Regression Sum of the square value shows the predictor’s relation to the dependent. If
the value is high that means predictor of the Dependent variable indicating that the model
explains a significant portion of the variance in the dependent variable. In our analysis value is
36.102
 Residual value explains the other predictor except our selected one which affects the
Dependent variable.
 In the ANOVA table, we can say that the model seems to be statistically significant in
predicting the dependent variable, which suggests that the independent variables included in
the model collectively have a significant effect on the dependent variable 14
 Coefficientsa

Standardized
Unstandardized Coefficients Coefficients

B Std. Error Beta

Model t Sig.
1 (Constant)
1.199 .292 4.104 .000

Top Management Support

0.300 0.061 0.319 4.904 0.000

Competitive Pressure
0.426 0.058 0.453 7.396 0.000

Technological competency
0.425 0.061 0.433 7.004 0.000

Complexity
0.505 0.059 0.507 8.560 0.000

Compatibility
0.430 0.062 0.427 6.877 0.000

a. Dependent Variable: AI Adoption

 the table suggests that all of the predictor variables are statistically significant in
predicting the dependent variable, as evidenced by the low p-values (all less
than .001). Additionally, the standardized coefficients suggest that "Complexity"
has the largest effect on the dependent variable, while "Top Management
Support" has the smallest effect 15
Conclusion

 In conclusion, the study shows that organizations with top management support
and high levels of competitive pressure, technological competency, and
compatibility are more likely to adopt AI in HRM. These findings can be used by
organizations to assess their readiness for AI adoption in HRM and to identify
areas where they need to focus their efforts to facilitate successful AI
implementation in HRM

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References
 List all sources cited in the research proposal.
 Dr. Nidhi Oswal, Dr. Majdi Khaleeli and Dr. Ayman Alarmoti, Recruitment In The Era Of Industry 4.0: Use Of
Artificial Intelligence In Recruitment And Its Impact, Palarch's Jurnal of archcheology of egypt/Egyptology.
(2020)
 Arun, S.N. Premnath and A. “A Qualitative Study of Artificial Intelligence Application”. Journal of Xi'an
University of Architecture & Technology. Volume XI, Issue XII, 2019
 Jennifer Johansson and Senja Herranen, “The application of Artificial Intelligence (AI) in Human Resource
Management: Current state of AI and its impact on the traditional recruitment process”. May 2019
 Nishad Nawaz1, Anjali Mary Gomes. “Artificial Intelligence Chatbots are New Recruiters”. (IJACSA)
International Journal of Advanced Computer Science and Applications, Vol. 10, No. 9, 2019
 Yi-Shun Wang, Hsien-Ta Li, Ci-Rong Li, Ding-Zhong Zhang “Factors affecting hotels' adoption of mobile
reservation systems: A technology-organization-environment framework”. 2016
 Hong Chen , Ling Li & Yong Chen “Explore success factors that impact artificial intelligence adoption on
telecom industry in China, Journal of Management Analytics” 2021
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References

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 Premkumar, G., & Roberts, M. (1999). Adoption of new information technologies in rural small
businesses. Omega, The International Journal of Management Science, 27(4), 467e484.
 Soliman, K. S., & Janz, B. D. (2004). An exploratory study to identify the critical factors
affecting the decision to establish Internet-based interorganizational information systems.
Information and Management, 41(6), 697e706.
 Iacovou, C. L., Benbasat, I., & Dexter, A. S. (1995). Electronic data interchange and small
organizations: adoption and impact of technology. MIS Quarterly, 19(4), 465e485
 Lin, H. F. (2006). Interorganizational and organizational determinants of planning effectiveness
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